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Twilio Brings Analytics Into Flex Platform With Ytica Buyout

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Twilio Inc. (TWLO - Free Report) recently announced that it has acquired its long-term business partner Ytica, as part of efforts to enhance its customer service application platform, Twilio Flex.

With the acquisition, the company expects to provide an operational and analytical edge to Twilio Flex’s customer service solution. Ytica’s technology is expected to be offered independently to other contact center SaaS vendors.

Even though the acquisition is not expected to bring much change in Twilio’s top line in the current fiscal, Ytica’s sound analytics and workforce optimization expertise will benefit the company significantly in the long run.

Focus on Twilio Flex

Twilio Flex is gaining popularity very quickly, making the company increasingly optimistic about its prospects. However, the one thing, which the platform was in dire need of, was a way to keep a track on the performance of the customer service team from the application itself.

What makes it very important is that some users have to manage employee strength of up to 20,000. This is where Ytica’s technology comes in, enabling easy monitoring, intervention and training.

Ever since the launch of Twilio Flex this March, the company has focused on the development and enhancement of the platform. In this regard, Twilio recently collaborated with Alphabets’ (GOOGL - Free Report) Google Cloud to integrate Contact Center AI into Twilio Flex, thus deepening its artificial intelligence capabilities.

Robust Global Expansion Bodes Well for Twilio

Apart from the strategic acquisition, Twilio also announced the opening of a new office in Prague. Incidentally, this is also the place where Ytica has its headquarters. The new Prague office marks Twilio’s 17th global office.

Twilio’s efforts toward expanding global footprint are commendable. These efforts have paid off well for the company as evident from the fact that the revenue contribution from outside the U.S. market grew to 23% in 2017 from 13% in 2013.

Driven by such continued innovations and expansive efforts, shares of the company have returned a whopping 261.4% compared with the industry’s rally of 24.1% on a year-to-date basis.


Zacks Rank & Stocks to Consider

Twilio currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc. (FTNT - Free Report) and Vishay Intertechnology, Inc.(VSH - Free Report) , both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Fortinet and Vishay is projected to be 16.8% and 9.16%, respectively.

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